Detroit to Face Creditors as Bankruptcy Trial Kicks Off

City to Defend Cost-Cutting Plan in Trial Expected to Last Weeks

DETROIT—The nation's largest municipal-bankruptcy case is set for a showdown trial starting Tuesday, pitting the city's emergency manager against holdout creditors seeking billions in payouts.

The trial, expected to last weeks, comes more than a year after Detroit filed for bankruptcy protection under Chapter 9, a rarely used provision of the law seen as a last resort for financially ailing cities and towns. The city filed in July...